Chegg (CHGG) Shows Fast-paced Momentum But Is Still a Bargain Stock

Core Insights - Momentum investing focuses on "buying high and selling higher" rather than traditional "buying low and selling high" strategies [1] - Identifying the right entry point for fast-moving stocks can be challenging, as they may lose momentum if future growth does not justify their high valuations [2] - A safer investment strategy involves targeting bargain stocks that exhibit recent price momentum [3] Company Analysis: Chegg (CHGG) - Chegg has shown a recent price momentum with a four-week price change of 2%, indicating growing investor interest [4] - Over the past 12 weeks, CHGG's stock has gained 4.2%, demonstrating its ability to deliver positive returns over a longer timeframe [5] - CHGG has a beta of 1.85, suggesting it moves 85% more than the market in either direction, indicating fast-paced momentum [5] - The stock has a Momentum Score of A, suggesting it is an opportune time to invest [6] - CHGG has received a Zacks Rank 1 (Strong Buy) due to upward revisions in earnings estimates, which typically attract more investors [7] - The stock is currently trading at a Price-to-Sales ratio of 0.32, indicating it is undervalued, as investors pay only 32 cents for each dollar of sales [7] - Overall, CHGG appears to have significant growth potential while being attractively priced [8]